MEMBERS of Parliament who fail to declare key financial interests would face up to five years in jail and the loss of their seat under radical changes to disclosure laws being called for in response to revelations at the state's largest ever corruption hearing.
As the former mineral resources minister Ian Macdonald prepares to give evidence to the Independent Commission Against Corruption on Monday, the NSW Greens are proposing far-reaching changes to the rules of what MPs must disclose publicly.
Ian Macdonald ... set to give evidence.Credit: Edwina Pickles
The party is calling for mandatory disclosure of the ''significant financial interests'' of not only an MP but their spouse or partner and immediate family members, including their children and their children's partners. The personal income of an MP's spouse or immediate family member would be made available to Parliament but would not be publicly disclosed.
The rules would extend to loans or benefits from a trust.
Last week it emerged at the ICAC, which is examining alleged corruption in the granting of lucrative mining licences, that the former Labor powerbroker Eddie Obeid and his wife, Judith, were the ultimate beneficiaries of a family trust which had distributed millions of dollars.
Mr Obeid told the commission he had not declared the money to Parliament when he was an MP because it was a loan from his family, which is not required to be disclosed under the present regulations.
However, Mr Obeid conceded he did not know the term of the loan or its interest rate and said that he had no intention of repaying the loan.
The Greens also want the taxable income of MPs and any other payment to them or interest in a trust or company to be publicly declared.
If an MP or their family has a shareholding in a private company doing business with state or local government, the value and nature of the business would also have to be disclosed.
Additionally, an MP who votes on a matter in Parliament or is a member of a parliamentary committee examining an issue would have to declare any gift or benefit from a company or person who could benefit from the outcome of the vote.
The Greens say its state MPs will abide by the proposed financial disclosure rules voluntarily until such time as they become mandatory.
Similar changes, such as the requirement for MPs to declare their taxable income and disclosure of the interests of an MP's spouse, were called for by the Opposition Leader, John Robertson, a week ago. Mr Robertson and members of the Labor shadow cabinet will make voluntary disclosures by March 31.
A Greens MP, John Kaye, said his party's proposals go much further, including potential jail terms of up to five years. He called on the Premier, Barry O'Farrell, to implement the proposals immediately.
''It is not just Labor that is suffering at ICAC. Parliament's reputation is taking a hit,'' he said. ''Voters have a right to know if elected members are hiding assets or income in trusts or in the bank accounts of spouses or children.''
Mr O'Farrell has said he will wait for the recommendations of the ICAC before considering whether to change the disclosure rules for MPs.